Cisco's outlook boosts Taiwanese electronics makers

BLOOMBERG , TAIPEI

The TAIEX gained for a third session yesterday. Suppliers to Cisco Systems Inc, such as Compeq Manufacturing Co (華通電子) and Accton Technology Corp (智邦), gained after a Lehman Brothers Inc analyst said Cisco's May sales were "solid."

Exporters such as Taiwan Semiconductor Manufacturing Co (台積電) and United Microelectronics Corp (聯電) gained on optimism the spread of SARS will be contained, easing concern among overseas buyers, many of whom have shunned visiting the country.

"Leading US technology makers have shown signs of a brighter outlook, restoring investor confidence in technology-related shares," said Simon Chao (趙永宏), who manages US$17 million at President Investment Trust Corp (統一投信).

The TAIEX rose 73.57, or 1.7 percent, to 4,334.59. Only 78 of the 609 stocks on the Taiwan Stock Exchange declined. The Taiwan Futures Index added 1.7 percent to 4,316.